Managers of Harvard Pilgrim Health Care expect fees related to the Patient Protection and Affordable Care Act to amount to about 5 percent of the premiums a new plan will generate.
The company described how PPACA fees might affect costs in a rate filing for a family of new indemnity preferred provider organization plans an affiliate, HPHC Insurance Co. Inc., wants to sell in Connecticut.
The nonprofit, Massachusetts-based carrier hopes to start selling bronze, silver, gold and platinum PPO coverage in Connecticut’s non-exchange small-group market in the third quarter.
HPHC is expecting to charge a base rate of $407.84 per member per month, with $319.08 going to pay claims and $84.67 to pay non-claim expenses. The company hopes to get $4.08 in operating profits per member per month.